FWD Research, the Independent Research Agency specialising in the financial sector, today announced the results from the first wave of its Insurance Brokers Pulse-Point Tracker (PPT) – a COVID-19-focused industry confidence barometer. Its findings show that two thirds of UK brokers polled believe the insurance profession has not reacted well to ensure consumers and businesses have the adequate cover to navigate the pandemic crisis.
Results are based on 150 telephone interviews across FWD’s Broking Now Panel undertaken throughout May and the beginning of June. It reveals that Commercial Brokers have increasingly gained confidence in their companies trading future as the pandemic unfolded.
Simon Staplehurst, Senior Research Director of FWD Research said: “However, when it comes to long term outlook, there were a number of ongoing concerns over the success of some of their customer groups, particularly across some micro and small SMEs and their own jobs, with a quarter of brokers feeling uncertain about job security. However, the survey finds only 1% of brokers have had to make redundancies and a third of brokerages have put staff on furlough.”
Staplehurst added: “Business confidence for the long term focused more on business survival rather than anything else, particularly as brokers predicting that they could lose nearly a quarter of their new business GWP this year.”
In addition, brokers have expressed concerns over the Industry’s response and the support provided:
· Nearly two thirds of brokers believe that the insurance industry has not reacted well to ensure people are covered at this uncertain time.
‘The industry was deadly silent for the first two weeks but they should not have been.’
‘They need to be more proactive in terms of guiding us in terms of legislation.’
· Nearly all brokers agree that all insurance wording need to be reviewed as a result of COVID-19.
· Nearly all brokers believe that Business Interruption cover is important to their book of business.
o This becomes increasingly critical cross larger brokerages
· The majority of brokers think that unoccupied premises wordings need an urgent review.
· Significantly more brokers have concerns over policy wordings from Lloyds of London and the London Market than other markets.
The second wave of Insurance Brokers PPT will further explore industry specific concerns around business change and challenges moving forward once the easing of the lockdown begins to impact the UK business landscape. This will be conducted in June and July.
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